WHAT ARE THE BENEFITS OF PAYING FOR YOUR BANK ACCOUNT?

October 7, 2016

Saving is an important aspect of effectively managing your finances. Whether you decide to spend wisely, plan your expenses or budget your spending, the ultimate goal is to be able to save. Having a bank account is important in this regard.

Because most bank accounts come with costs, choosing the best bank account that works for you helps you save on fees and charges; and earn high interest on your savings. As banks are profit oriented; especially with the decline of free banking, choosing the right institution that would offer value for your money is key.

In order to achieve this, banking products of which bank accounts are a part, must be chosen wisely. Current accounts are considered one of the most essential of these products. They may be used to transact daily business like payment of bills and rent, access overdraft facilities, provide stress-free access to cash and enable interest earnings on balance. Some bank accounts incur charges. Some current accounts are even managed purely online now. It is therefore necessary to choose the best available option with the best possible rates.

Paying for your bank account increases the accountability level of your bank to you, its customer, and reduces the chances of mis-selling you its products. This is why one of the benefits of paying for your bank account is getting reasonable services in return.

According to PwC, free bank accounts are unsustainable and would harm customers in the long run. Additional benefits such as insurance and cashback get to be added to your package, resulting in added value in the services offered. In the long run, the customer as well as the bank benefits.

In paying for your bank account, be it basic, current, joint and so on, you should seize the opportunity of the availability of different options by opting for one that offers good deals which are best suited to you. You should consider one which would enable you make the most of your finances. Current accounts are the most popular and are useful for the management of everyday spending and transactions.

Although there are bank accounts that do not require payment to be run, it is the case that some of them come with some hidden charges. In spite of this, paying for your bank account is a more sustainable approach in the long term because, according to PwC, the risk of banks trying to recover costs by selling you products that you do not need, is reduced.